Chargeback Threshold

The Chargeback Threshold is a predefined limit on the acceptable chargeback rate for a merchant set by card networks, processors, or acquirers. Exceeding this threshold can trigger adverse actions, such as increased scrutiny, higher processing fees, or enrollment in chargeback monitoring programs.

The threshold is often expressed as a percentage of transactions resulting in chargebacks and may include a cap on the absolute number of chargebacks permitted within a specific period. Staying below the chargeback threshold is essential for merchants to maintain good standing with payment processors and avoid punitive measures.